washington mutual

Here’s a fun accounting term to remember: accretable yield. That’s the difference between a loan’s value on a bank’s balance sheet and the expected cash flow from the loan. Bloomberg reports:
JPMorgan Chase & Co. stands to reap a $29 billion windfall thanks to an accounting rule that lets the second-biggest U.S. bank transform bad loans [...]

When the Office of Thrift Supervision failed to notice a meth addict was mortgage supervisor at Washington Mutual, its days might have appeared numbered. But thanks to insurance firms looking to pick up government bailout money, it could rise again.

Shocks like falling home prices intensify as they move through the convoluted chains of dealings that now link world markets.

As if there weren’t enough news going on already, Washington Mutual goes belly up in the largest bank failure in U.S. history, and JP Morgan Chase buys up all its pieces.
WaMu was one of the more notorious subprime lenders – remember this pool of WaMu Alt-A loans we talked about last spring, the one where [...]